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My name is on the mortgage deed, but not the loan. Will a foreclosure effect my credit?

Marietta, GA |

I live in Georgia and we received a notice from the mortgage company that if we do not bring our payments current by 10/24, then they will start the foreclosure proceedings. My name is on the mortgage deed, but not the loan. Will the foreclosure effect my credit? A friend suggested that I do a quit claim deed to get my name off the title. Is that a necessary step?

Attorney Answers 5


  1. Your description is a little confusing. If you are not obligated on the mortgage loan then a foreclosure will not effect your credit or even be reported on your credit. Being listed on the deed in no way makes you liable on the loan.


  2. You might have if signed a waiver of rights, allowing that your interest in the property can be foreclosed upon if the note is not paid.
    These are not uncommon in Missouri, where I practice. You chief should consult with a Georgia attorney knowledgeable in real estate, & bring papers with you!


  3. As a Georgia attorney I help clients with this issue regaularly. In our state, if you are not listed on the loan, then you should not incur any credit problems for failure to make payments or if the property goes into foreclosure. I would not recommend removing yourself from the Quit Claim Deed as it would divest your title interest in the property. Of course, based on the limited information in your question, you really need to consult with a Georgia attorney to get advice before taking any action.


  4. From what you posted, if you are not on the loan, a forecosure has no effect on your credit report. I'd need to know more details to properly advise you, but signing a quitclaim deed is probably unnecessary and may even be a bad idea,


  5. A foreclosure Should not affect your credit but it might appear anyhow. I have a case now where a wife did not sign the Note or the Deed to Secure Debt. But, when the lender foreclosed and recorded a Deed under Power (DUP), the lender nevertheless put the wife's name on the DUP. The credit reporting agency apparently picked up on the DUP and there is a mark on the wife's credit.

    In sum, while the foreclosure should not affect you, it is possible that it might. Monitor your credit and consult an attorney if you have a problem come up.